New and Old Alliances Lead ProLogis to $225.5M in Financing for European Property Fund

In a frosty lending climate, friendships can make the difference.

June 18, 2010
By Barbra Murray, Contributing Editor

Courtesy Flickr Creative Commons user Goodnight London

ProLogis has just gotten its hands on two financing deals totaling $225.5 million for ProLogis European Properties Fund II. The Denver-based global distribution facilities provider was able to secure one loan from a lender with which the company has an existing relationship and another loan with a financial institution that is new to ProLogis.

Frankfurt, Germany-based Helaba Landesbank Hessen-Thüringen served as arranger and sole lender of $47.5 million in the form of an interest-only loan with an initial three-year term. The facility is secured by six ProLogis distribution centers totaling nearly 1.9 million square feet in Nove Mesto and Galanta, Slovakia.

In a frosty lending climate, friendships can make the difference. In October 2009, Helaba provided PEPF with an approximately $59 million, five-year loan delivered in two tranches and secured by a group of four logistic and distribution centers encompassing 1.4 million square feet in Gothenburg, Örebo, and Norrköping, Sweden.

Lloyds TSB has also come through for ProLogis–and in a big way. Helaba’s $47.5 million in financing was supplemented by the London-headquartered bank’s loan of $175 million. The five-year, interest only loan is secured by 11 distribution facilities in the U.K. The transaction is a first between Lloyds TSB and ProLogis.

The global financial crisis continues to plague countries around the world, and although there has been some softening, banks remain tight-fisted with loans. Exceptions, however, are made for the right borrowers. “We believe that the quality of our distribution facilities, and the customers that occupy them, make ProLogis’ distribution centers attractive for secured and unsecured lenders,” Christian Nickels-Teske, Head of Treasury for ProLogis in Europe, noted in a prepared statement.